Sir Richard Branson on track to take franchise

VIRGIN Rail is poised to sign a contract to run the West Coast Mainline (WCM) franchise on an interim basis.

Ministers want Virgin Rail to run the service under a management contract []

The management contract, which will see Sir Richard Branson’s Virgin Trains run the key rail route from next week, is expected to be finalised early this week after weeks of talks.

Transport Secretary Patrick McLoughlin has been determined to sign the contract in a bid to put to rest the controversy which has surrounded the WCM franchise.

Earlier this year, a new franchise deal for the line between London and Scotland collapsed after serious flaws were found in the bidding process. FirstGroup, the bus and rail operator, had been selected to take over the line. The contest for the franchise is being rerun.

The collapse of the process will cost the taxpayer £40 million in compensation to the bidders, a parliamentary written answer has revealed.

Ministers want Virgin Rail to run the service under a management contract while a new competition is held. This could take at least 18 months.

Transport Secretary Patrick McLoughlin has been determined to sign the contract in a bid to put to rest the controversy which has surrounded the WCM franchise

Negotiations on the interim management contract have been going on for weeks.

If they had failed, Directly Operated Railways, the State-backed train operator, was ready to step in and run the West Coast Mainline from next month.